Interest rate risk: Difference between revisions

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* [[Pipeline risk]]
* [[Pipeline risk]]
* [[Portfolio hedging]]
* [[Portfolio hedging]]
* [[Risk free rate of return]]
* [[Risk-free rate of return]]
* [[Shock]]
* [[Shock]]
* [[Time bins]]
* [[Time bins]]

Revision as of 20:15, 5 February 2018

The risk associated with a change in interest rates.


This may take several forms in the treasury context.

For example, and depending on the direction of the change:

  • Increasing interest cost
  • Falling interest income
  • Changing market value of debt, or of pension liabilities
  • Differences in competitiveness
  • The changing nature of a market when interest rates change
  • Secondary effects, especially potentially adverse effects, resulting from any of the primary effects above. For example, potential breaches of interest cover covenants.


Sometimes written 'interest-rate risk'.


See also


Other resources

The devil is in the detail, The Treasurer, 2015